What distinguishes core competencies from ordinary capabilities?

Core competencies are indeed vital aspects of a company's strategy that set it apart from competitors. They encompass a unique combination of skills, technologies, and resources that allow an organization to deliver value to its customers in a way that competitors cannot easily replicate. This unique positioning creates sustainable competitive advantages, which are crucial for long-term success in the marketplace.

In contrast, ordinary capabilities represent the routine functions and processes that a business must perform to operate effectively. While these capabilities are essential, they do not provide the distinctive edge that core competencies offer. They may include basic operational skills and knowledge that are common within the industry but are not unique to a particular company.

By focusing on core competencies, companies can leverage these strengths to innovate, adapt to changes in the market, and fulfill customer needs more effectively than their rivals, leading to a stronger strategic position. This distinction clarifies why core competencies are seen as the foundation of competitive advantage, while ordinary capabilities are necessary but not sufficient for establishing market leadership.